The Investment Banking Representative Qualification Examination, also known as Series 79, is an essential test for broker dealers. Since 2018, the exam has undergone significant changes. For one thing, it includes a shorter test than can be found in the Series 7 exam. This article outlines the Series 79 curricula and what you need to qualify for the FINRA investment banking license.
Mergers, Acquisitions, and Financial Restructuring
The Series 79 exam focuses primarily on investment banking. The test requires an understanding of how to set up the negotiation process. M and A bankers must be conversant with identifying the potential transaction, assessing corporate issues, and preparing financial documents.
Investment bankers should have the skill to assist insolvent businesses — an opportunity to reorganize and repay debts. You’ll need to gain a thorough understanding of the reorganization of companies under the Chapter 11 bankruptcy process.
The exam may also cover the following under mergers and acquisition:
- Tender offers
- Restructuring and reorganization
- Liquidating assets
- Bidding process
- Execution of the bill
Execution and Market Distribution
The Series 79 curriculum requires the investment broker dealer to have extensive knowledge of equity and debt offerings. Bankers can facilitate those securities through either public or private acquisitions.
To qualify for a FINRA investment banking license, you need a grasp of sizing and timing strategies for effective execution. The exam covers the marketing and distribution of information in compliance with laws and regulations.
Collection and Analysis of Data
The collection and analysis part of the FINRA investment banking license qualification process involves researching and assessing relevant market reports. It covers 49% of the total marks from the test. It evaluates the broker dealer’s ability to find data and generate valuable information.
An investment banking license test will evaluate your ability to analyze documents to understand ownership or trading patterns. It requires an understanding of SEC rules and regulations and how to generate metrics to evaluate the firm’s viability.
Performing Due Diligence
The Series 79 sponsorship exam will test if you can identify the information necessary to complete the public and private transactions. It covers due diligence for both sell-side or buy-side transactions.
A certified broker dealer must examine the leadership of an organization and conduct background checks. The analysis may cover aspects of the organization’s culture, including labor challenges, environment, and the nature of corporate governance.
Public Offerings and Securities Registration
Under the underwriting section, the exam will also test your understanding of security registration processes. Security registration may involve the writing and distribution of prospectors by broker dealers.
Generally speaking, this covers the rules and regulations necessary for financial statements. You should have knowledge of different types of underwriting commitments in public offerings. The agreements include competitive or negotiated bids, all-or-none, and firm commitment.
According to statistics, seven out of 10 businesses are in debt. A broker dealer has to have extensive knowledge of finance to assist struggling companies. Aspiring investment bankers have to complete the SIE (Securities Industry Essentials) test alongside the Series 79 exam. To acquire a FINRA investment banking license, you may need sponsorship. Our program will supervise your activities throughout the exam period. For more information, please contact us today.